The AI revolution is leading to a massive boom in data centers. Major cloud-service providers like Google, Meta, Microsoft, and Amazon are engaged in a frenzied bid to keep up with the demand for AI services, and they are spending hundreds of billions of dollars to compete. The money taps remain turned on full-blast even in the face of a choppy stock market and persistent fears over whether AI stocks are in a bubble.
“Hyperscalers are going to spend maybe between $750 [billion] and $800 billion [a year]. Some forecasts even have it up to a trillion, and that would put it at 2.5% to 3% of U.S. GDP, which is just extraordinary for a capital market,” John Mowrey, chief investment officer at NFJ Investment Group, said.
